Investment banking powerhouse DAM Capital Advisors is making its highly anticipated debut on the NSE and BSE today, December 27, at 10 AM. After its IPO garnered a stellar subscription of nearly 82 times, the market is abuzz with expectations of robust listing gains. Analysts are weighing in with mixed strategies, balancing the potential for immediate profits against long-term growth opportunities.
A Blockbuster IPO with Strong Backing
Led by investment banker Dharmesh Mehta, DAM Capital Advisors raised ₹840 crore through its IPO, which concluded on December 23. The issue, priced at ₹273-₹283 per share, was an offer-for-sale (OFS) entirely by existing shareholders, including the promoter and four major investors.
The IPO saw a tremendous response from both qualified institutional buyers (QIBs) and non-institutional investors (NIIs), reflecting strong market confidence in DAM Capital’s fundamentals and growth prospects.
Listing Gains and Long-Term Potential
Narendra Solanki, Head of Fundamental Research, Anand Rathi Shares
Solanki views DAM Capital as a long-term wealth creator due to its market leadership and strategic growth plans. “At the upper price band, the issue is valued at a P/E of 22.8x based on FY25 annualized earnings, which is fairly priced. Investors may consider booking partial profits on listing but should hold for long-term gains,” he noted.
Prashanth Tapse, Senior VP, Mehta Equities
Tapse predicts listing gains of up to 60% over the IPO price. He advises conservative investors to book profits if the stock exceeds expectations but encourages long-term investors to hold, citing DAM Capital’s market resilience and robust operational framework.
Abhishek Pandya, Research Analyst, StoxBox
Pandya highlights DAM Capital’s strong financial performance and industry leadership. “With a 12.1% market share in FY24 IPOs and QIPs, the company has cemented its status as a leader in the investment banking sector. Its financial metrics and growth trajectory make it a compelling long-term investment.”
Financial Highlights: A Growth Story in the Making
DAM Capital Advisors has demonstrated stellar financial performance, with key metrics underscoring its operational efficiency and growth potential:
- EBITDA CAGR (FY22-FY24): 73.4%, reaching ₹1,030.2 million in FY24.
- Total Income CAGR (FY22-FY24): 38.8%, driven by a focus on fee-based services.
- The company continues to build global partnerships and expand its fee-based business, strengthening its foundation for sustained growth.
What Should Investors Do Post-Listing?
Analysts suggest a tailored approach based on investor profiles and market conditions:
- Conservative investors: Consider booking profits on strong listing gains, particularly if the stock trades significantly above the IPO price.
- Long-term investors: Hold shares to capitalize on DAM Capital’s growth potential, strong financial performance, and leadership in the investment banking space.
- Non-allottees: Watch for post-listing dips due to profit-booking and accumulate shares at attractive valuations.
Market Outlook and Final Thoughts
DAM Capital Advisors’ IPO debut is set to make waves, with analysts forecasting a premium of up to 60% over the issue price. Its robust financials, industry leadership, and strategic growth initiatives position it as a stock to watch in the long term. Whether you’re in it for the quick gains or the extended growth story, DAM Capital Advisors is undeniably poised for a strong market performance.
